BoE declares end of post-crisis period

The FPC assessed the outlook for financial stability by identifying the risks faced by the UK financial system and weighing them against the resilience of the system. By doing so, it assessed the ability of the financial system to continue to provide its core functions to the economy, even under adverse circumstances.

The FPC judged that the system has now moved out of a period of heightened risk as financial institutions, businesses and households sought to repair their balance sheets after the crisis. Household debt has fallen relative to income, but is still elevated, banks are more resilient and credit is generally more available.

Mark Carney, Governor of the Bank of England, said:

"UK banks are now significantly more resilient than before the global financial crisis.

"Capital requirements for the largest banks have risen ten-fold. Their holdings of liquid assets have increased four-fold. Their trading assets are down by a third, and inter-bank exposures have shrunk by two-thirds."

Luke Davis, Vice President, Robert Half Financial Services, commented:

“The Bank of England declaring the banking crisis officially over is great news and will help boost business confidence, encouraging investment and growth. This sentiment is reflected by UK Finance Directors with 86% now having confidence in the prospects for the economy.

“The UK employment marketplace relies heavily on the Financial Services sector. This announcement will encourage businesses to capitalise on the confidence and bring in the right people as we move into a growth phase. Businesses looking to be successful during this time need to ensure they move quickly. Securing highly skilled professionals who can deliver against strategic growth initiatives will be the key to gaining a competitive advantage.”